By Matt Elton (Group CEO Velocicor – Vice Chair IRTA) & Leen Cuypers (Chief Innovation Officer Velocicor).
These are exciting times for RegTech. RegTech has been here for quite some time but its relevance has significantly increased with the disruptive impact of FinTech Start-Ups, and the new business models they have created. While business has changed and the amount of regulations have increased, the regulators as well as the companies involved are faced with a challenging task. The regulators on the one hand need to understand these new technologies and business models and find ways to enforce existing regulations or create new legislation in accordance with this new reality, while the companies on the other hand, need to prove being compliant. As a result, compliance with regulations are considered one of the top challenges in the financial sector. The international potential for RegTech is real, as regulations aren’t a local matter and the challenges the industry faces aren’t territorially bound.
For the traditional players in the financial industry, RegTech not only provides a solution to facilitate the compliance process, but also brings opportunities beyond automation and streamlining. Those companies who are able to understand how to exploit this potential, will thrive in this new reality.
For RegTech firms, these are exciting times. They have the opportunity to solve one of the industry’s main challenges on an international scale, if only they approach it right. When working with RegTech firms across the globe, our approach to the RegTech companies willing to expand their business, is to get a clear understanding of the target market’s needs. What works in one market might not perfectly fit another. In many cases, slight adjustments will bring the perfect market fit and the resulting success. Lots of potential is left unexplored, in the working across company or territorial borders. Traditional players have in many cases gathered a patchwork of (RegTech) solutions, each one aiming to tackle one specific regulation. They are looking for holistic solutions, to regain overview. RegTech start-ups that are open to work together, with other Start-Ups, big Tech companies on a local or even better or an international level, they might be able to provide the holistic solution the market is looking for, as well as to greatly extend their reach and success. These are exciting times ahead where organisations like the IRTA will bring the industry together.
Publié le 05 octobre 2017